CZ to Resign From Binance.US Board. Details
- Binance.US emphasized that it operates independently of Binance.com.
- CZ resigned from his role at Binance.com last week as part of a settlement with the DOJ.
- However, CZ, the former CEO of Binance, is leaving the board of the American exchange in spite of its independence from the global platform.
The American division of Binance.com, Binance.US, said on Tuesday that Changpeng Zhao (CZ), the company’s previous CEO, has stepped down as chairman of the board effective immediately. The statement made it clear that Binance.US runs separately from Binance.com and is completely operational.
Binance.US wrote in its announcement:
As CZ transitions to life after Binance, he has decided to step down from his role as chairman of our board of directors and transferred his voting rights through a proxy arrangement, whereby his interest in the company is purely economic and he will no longer be involved in our governance.
The exchange added that “Binance.US continues to be led by Norman Reed and our existing, experienced management team. We are well capitalized to continue to build and grow our platform and to do so with renewed clarity and momentum while maintaining the same customer-first commitment.”
Binance.US shared the news following a recent deal between the global Binance platform and the US Department of Justice. Last week, Bitnation reported that the DOJ had reached a settlement with Binance, which would see the firm pay about $4.3 billion in fines and settlements.
A number of US organizations were also involved in this settlement, including the Financial Crimes Enforcement Network (FinCEN), the Commodity Futures Trading Commission (CFTC), and the Treasury’s Office of Foreign Assets Control (OFAC).
Binance.US further explained that it has no unresolved enforcement problems with the DOJ, FinCEN, OFAC, or CFTC and that it was not part of Binance’s agreement with regulators last week. The business emphasized that it operates independently of Binance.com.
Last week, Zhao entered a guilty plea to one felony count for failing to keep up a successful anti-money laundering program while serving as the CEO of Binance. The 46-year-old stepped down from his role at Binance and is awaiting his sentencing.
However, the court is debating whether to grant CZ permission to visit the United Arab Emirates prior to his February sentencing. A US judge recently ordered the Binance founder to remain in the US for the time being. CZ faces the possibility of spending up to 18 months behind bars.
On the other hand, while Binance.US was not part of last week’s settlement, the exchange is still facing legal action brought by the Securities and Exchange Commission in June. According to reports, the commission was looking into whether Binance.US had a backdoor that allowed it to manipulate user assets, much like what transpired at Bankman-Fried’s FTX.